There will be a new generation of BMW X3 that will be revealed in early 2011. Somehow, this model will be a direct competition with Audi Q5, Volvo XC60 and probably the forthcoming Land Rover LRX.

BMW X3 has struggled to match the sales of BMW X5, though BMW has still sold more than 600,000 units globally since the model was initially launched in 2003.

The engines that will be use by BMW X3 include four and six cylinder turbo diesels and a 3.0-litre turbocharged six cylinder gasoline engine that similar to the one on BMW 535i Gran Turismo. The gearbox mated with the engine is likely to be the ZF 8-speed automatic gearbox as well.

The overall size of the car will be slightly bigger as BMW aims to increase the size to make a distinction between the X3 and the entry X1.